Oil Higher As U.S. Iran Sanctions Raise Supply Concerns

Oil prices rose on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies. U.S. Energy Secretary Rick Perry said that he did not expect any price spikes and that the world’s top three oil producers could between them raise global output in the next 18 months. Brent crude oil was up 50 cents a barrel at $78.59. U.S. light crude was up 50 cents at $69.49. “Oil is pushing higher on widespread expectations of Iranian supply shortages,” said Stephen Brennock, analyst at London brokerage PVM Oil. Iran’s oil exports have been falling in recent months as more buyers, including its second-largest buyer India, cut imports ahead of U.S. sanctions that take effect in November. Washington aims to cut Iran oil exports down to zero to force Tehran to re-negotiate a nuclear deal. “Iranian crude oil export loadings have declined by 580,000 barrels per day in the past three months,” Bank of America Merrill Lynch analysts said in a note to clients.